German Consumer Sentiment Reaches All-Time Low In September

Currently, consumer sentiment is at an all-time low for Germany since the association began recording

Having reached an all-time low in August, the consumer sentiment index has fallen further this month. According to the HDE, there is no reversal of the trend in sight and the next few months are likely to be characterised by consumer restraint. Consumers’ pessimistic view of the overall economic situation is in line with that of businesses.

Last year, consumers’ economic expectations were significantly better, but a decline in consumers’ own income expectations is causing a steep decline in sentiment. Disposable household income is declining as the cost of living rises, leaving consumers with less money for private consumption. The fact that more money will be needed for living expenses in the coming months is also reflected in the trend in propensity to buy and propensity to save. Consumers’ propensity to buy is declining further and has fallen to a new all-time low.

As further cost developments are not yet foreseeable, consumer sentiment is not expected to brighten in the coming weeks and months. The HDE warned that additional uncertainties could arise in the fall with regard to energy supply and the pandemic. A noticeable improvement in consumer sentiment is therefore unlikely before the spring of next year.

European Supermarket Magazine